Kenya has enjoyed cheap cost of data over the years previously ranking as the 41st cheapest country in the world, however, this might change if a proposed amendment in the Finance Bill 2021 to increase excise duty on the services is passed by July 1st.
The new report (not included in the Finance Bill 2021) tabled by the departmental committee on finance and national planning proposes that the rate of excise duty on telephone and internet data services be increased from 15pc to 20pc.
This move will see internet and phone providers increase the cost of the services as was seen when the government increased the excise duty from 10 to 15pc in the Finance Act 2018. This is in order to factor in the taxes.
Also Read: Report Names Safaricom Best for Data, Calls Amid Kenyans Outrage
If the Bill is amended, Safaricom might raise the cost of calls by 30 cents, and SMS by 10 cents, in 2018 the telco also increased the cost of data on their fibre services.
Zuku increased the cost of its 10mbps package from Sh3,500 to Sh3,999 while those who were paying for the Sh4,198 package were charged Sh4,598.
The increase in the cost of calls and the internet which are now essential in our day to day lives will be a major burden to Kenyans who are still reeling from the economic effects of Covid-19.
